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Words: | Submitted: Mon Jun 19 2006
... (functional). Analysing this company, the functional structure's strengths are: - Allows economies of scale within functional departments, - Enables in depth knowledge and skill development, - Is best with only few products, - Enables organisation to accomplish functional goals. On the other hand, many are the weaknesses of the functional structure, especially if applied to the Huggenkis Knitwear Ltd: - Causes hierarchies overload, - Leads to poor horizontal coordination among departments, - Causes a slow response time to environmental changes, - Results in less innovation, - Prevents communication among departments. All the negative aspects of the functional structure leads to an organisational change. Many other structures could be implemented in this company like the divisional structure, the matrix or the hybrid structure. The best kind of structure that in my opinion could be implemented is the divisional structure. This structure eliminates the problems caused by the functional structure because: - Involves high coordination across functions, - Allows units to adapt to differences in products, ...
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